The speed of delivering a product to a customer often affects customer satisfaction as much as the quality of the product itself.
If the raw materials do not reach the shelf fast enough, the entire production will stop and you will incur astronomical losses.
The only thing these two statements have in common is that they both rely heavily on your supply chain and improving it means improving your business. Here's how we expect new technology to help make these improvements possible.
Electric fleets
Electric fleets are inevitable. The only question is whether our technology has reached the tipping point where it is truly financially viable for businesses of all sizes.
The thing that most people get wrong about electric fleets and electric vehicles in general is that it's just about the vehicle technology. At the same time, real breakthroughs are happening in battery manufacturing and even battery programs like Elysia.
Once battery analytics become more sophisticated, more and more fleet managers and operators will be ready to transition to all-electric fleets. Previously, phenomena such as range anxiety caused many to hesitate to even consider these ideas seriously. This is no longer the case.
Electric fleets are environmentally friendly, which is a great moral advantage, but it's not just altruism that you need to focus on. Specifically, with the government subsidizing green businesses and practices and imposing fines for environmentally unfriendly methods, it is only a matter of time before this shift becomes optional.
One challenge, of course, is downtime due to shipping. As for gas, the charging process took a few minutes for each vehicle. This is no longer the case. This means that if you have charging stations in your space, you will need to schedule charging more precisely. Not to mention, a fair comparison cannot be made between the network of charging stations and the network of gas stations across the country.
Just keep in mind that these electric vehicles, batteries, and systems are getting better by the hour. Sure, you may want to wait a bit until you become more sophisticated, but that way, you will lose the privilege of being an early adopter.
Predictive analytics for demand forecasting
The biggest challenge in supply chain management is the importance of avoiding bottlenecks. If you can predict them, you have a chance to be proactive. This way, you will make optimal use of your space and labor and avoid creating scenarios where there is downtime due to lack of supply.
While everyone focuses exclusively on perishable goods, the truth is that this is just the tip of the iceberg. Sure, you'll order perishables in the amount you expect to spend in a short period of time (even if you don't have the tool, you'll try to make your best guess), but what about non-perishables?
Doesn't it make sense to just store?
Well, both yes and no.
First of all, can you really save all that space? We're talking about months and months of occupied space that you have no idea when you'll free it. Second, what about the capital you will be unnecessarily tying up? This can cause your cash flow management to be set up really late.
Now, one thing worth mentioning is that this type of analytical software offers specific insights that can be valuable not only to you but to your competitors as well. This is very annoying and you have to figure out a way to keep your data safe.
Access restrictions are just one of the measures you can implement, but you need to make sure your platforms are secure from external threats as well. Outsource your cybersecurity and even consider a penetration testing service; This way, you will be able to know that your platforms are truly secure.
Getting the insights you need and ensuring that the insights and data are secure should be your top priorities.
Innovations in last mile delivery
When it comes to the supply chain, it can be divided into two huge areas – shipping and last-mile delivery. Now, this last mile delivery is the last stage of the supply chain, which has a direct impact on customer satisfaction.
While there are plenty of new technologies, such as drones, automated deliveries, and self-driving vehicles, that play a huge role in this process, the truth is that it still comes down to the human factor. A good fleet management platform and a seasoned operator following Fleetio's Fleet Managers Guide can make a big difference.
As you can see, when it comes to long trips and bulky cargo containers, there's not much you can do. After all, this is something you're outsourcing, and if your suppliers are overseas, you're probably already notifying your customers that they'll have to wait a little longer.
Meanwhile, when it comes to last-mile delivery, this is where route optimization makes all the difference. With the right networked AI-powered tool, you can get your traffic information in real-time.
Not only that, but provided you still go the old route with human drivers, with the help of driver behavior analytics (and machine learning), the tool can evaluate each driver. In other words, not only will you get information about how long it will take for your shipment to get there; You'll also get information about how much time that particular driver typically takes to get there.
Also, and perhaps the most important part of all of this, it does a much better job of assessing the risk level of each individual driver.
Robotic Process Automation (RPA) and the Internet of Things
Most of the time, your fleets roam the same streets; In fact, since the platform makes recommendations based on the evolving situation in the field, couldn't it just reroute vehicles?
The main reason humans did this in the past is because this path choice was just one part of the equation. There were many business processes that led to the point where such automation could happen, but now, with automation systems powered by AI and machine learning so deep that it understands processes better than some managers, things are different.
The fact is that over time, these AI tools also gain “experience”. Sure, this is not an experience from the perspective of human consciousness, but with more data, the platform becomes “smarter” and more efficient.
With all this in mind, it's really no wonder some professionals predict that the implementation of AI will be as big as the Internet.
Then there's the fact that in 2024, everything will be online.
As you can see, the concept of the Internet of Things (IoT) has been around for a while. The biggest bottleneck was always the fact that there were only a few things that were online all the time. Today, this is no longer an isolated case, but a standard occurrence.
Every container and sometimes every object is tracked and analyzed in real time. This means we now have more insight into the supply chain than ever before.
Robotic warehouses
When it comes to the supply chain, you should never ignore the fact that it all starts with the warehouse.
Sure, you may choose to say that you just want to focus on transportation, but even then, the amount of time it takes to load those trucks may determine the speed of delivery.
Now, what does this speed depend on?
There are many reasons why trucks may not load as quickly as they were last time, even if there are the same number of containers and the weight is about the same. Not all of your warehouse employees work at the same pace/efficiency. Sometimes, you will be understaffed.
However, when you transform into robots, these things will never happen. Not only will your productivity become easier to forecast, but your costs will also become easier to control.
About 12 years ago, Amazon bought Kiva Systems for $775 million. At that time, the majority of the business world was shocked, believing that they would never achieve success. Well, history has proven them wrong.
Robots are already being used in warehouses around the world, and it's only a matter of time before this trend accelerates. We believe that 2024 will be the year.
In 2024, we will have more visibility and control over the supply chain than ever before
Overall, 2024 will be a year of great innovation. The mainstreaming of AI technology is already making huge impacts in analytics. As analytics increase, the cybersecurity burden will become heavier. It is also worth noting that the use of drones, autonomous vehicles, electric vehicles, and even warehouse robots may become more intense this year.
Veteran content writer, published author, and amateur boxer. Srdjan holds a Bachelor of Arts in English Language and Literature and is passionate about technology, pop culture, and self-improvement. He spends his free time reading, watching movies, and playing Super Mario Bros. With his son.
